almost 40, no retirement, what to do?

[disneysteve]

I have been on BP meds, thyroid meds, acid reflux meds as well and made some changes, weaned off of them (in conjunction with my doctor who is willing to reassess what i need) and now take no medications.

That's great. As a doctor, I have to agree that so much medication could be eliminated if people would just make some basic lifestyle changes - eat less, exercise more.

I'd be very careful about the thyroid medication, though. Once someone's thyroid becomes underactive, it stays that way for life. It doesn't suddenly start working normally again. So if you stopped your med, please get your bloodwork checked every few months. Most likely, the level will drift back down and you will need to restart the medication. That isn't really something you can control by lifestyle modification.

[cschin4]

People always talk about canceling cable TV. First, it isnt so simple nowadays. Most dish type cable services involve contracts so you cannot simply cancel. And, TV is still fairly cheap entertainment. And, if you enjoy it, i would keep it.
Some things that stand out:

Whole life insurance? Dump it. You can buy a term life policy much cheaper. The point of insurance is to be insured, not use the whole life part as a cash vehicle. It is just expensive insurance and with whole life you will wind up with less insurance than you need.

Prescriptions. $127 a month? For what? Are there cheaper generics? Or, can you get off the medication in lieu of other lifestyle changes? And, before you balk, you CAN make changes in medication. Many people think that once they are on something they have to be on it for life. I have been on BP meds, thyroid meds, acid reflux meds as well and made some changes, weaned off of them (in conjunction with my doctor who is willing to reassess what i need) and now take no medications.

[disneysteve]

"sorry i dont mean to hijack your thread, but can someone explain to me why a life insurance company would just give your money back after 30 years? im not saying i dont believe you, i really just dont understand."-rigz

The insurance company is gambling that you will live to the full term of your policy.

Actually, you pay more for the policy than you would for a regular term policy.

Both answers are correct. I would add that they aren't just betting you you live. They are also betting that you won't keep the policy for the full term. Most people don't. People change policies for any number of reasons. Personally, I've changed policies twice and I'm only 47.

The main thing is what maat pointed out. They charge you extra to get return of premium coverage so really they are just overcharging you for 20 or 30 years in order to give you back the money with no interest after that time. Not a good deal at all. Take the cheaper plain vanilla term and invest the difference.

[maat55]

oh i see. thanks.

Actually, you pay more for the policy than you would for a regular term policy. They will invest and earn some, but some will come from paying higher premiums.

[rigz]

"sorry i dont mean to hijack your thread, but can someone explain to me why a life insurance company would just give your money back after 30 years? im not saying i dont believe you, i really just dont understand."-rigz

The insurance company is gambling that you will live to the full term of your policy. If that happens here is what they do. They take the $500 per year that you are paying in premiums and invest it, for example in Mutual Funds that average 10% growth per year. At the end of 30 years, their investment will have something like $75,000 in it. They will then return your premiums which total $15,000. The insurance company will make a $60,000 profit.

oh i see. thanks.

[riverwed070707]

I agree you could maybe sell some land to make a quick buck and get your retirement savings rolling; however, the real issue here is income. You work PT and make as much as your husband does at the business he owns?? He makes less than you when you consider that he is getting free labor on all his paperwork. He needs to find something else. That would allow you to go full time as well because you won't be stuck doing his paper work all the time. Your lifestyle isn't unreasonable. If he could find something bringing in $2k a month (with benefits! You NEED health insurance) you could be well on your way to a comfy retirement in no time. I'm impressed you don't have any debt and have been getting by as well as you have.

Also, cancel the dish network. Watch TV from the internet. And why are your phones so expensive? You can't afford $150/month on phones when you aren't putting any money in savings.

[cschin4]

You have to take a radical look at how you really want to live your life and what is important to you. For me, having no debt is how i want to live and if that means just an OK home and just an OK car but money in the bank and peace of mind, that is the lifestyle i have worked out. If you want life on a farm and that type of lifestyle, then you need to set your life up in such as way as congruent to that. To me, a big house and lots of yard is just more expensive maintenance i don't need or want. Same with stuff. More stuff is more stuff to pay for, clean, service, and maintain. I just want a simple life. Talking a walk in the woods with my dog is enough for me. Or, reading a good book, or playing a board game with my kids. i don't need high end stuff nor want it. I dont' really like to travel all that much. We have local theater and restaurants. And, for fun we go for Friday night HS football. What could be better than that?

[maat55]

Years ago, I used to live on the edge. I had constant reflux problems and bleeding ulsers. We had a nice house with a pool, car payments, HEL, a credit card balance and no emergency fund(used our IRA savings on many occasions).

We sold our home during the 02 recession. Paid off all of our debts and kinda started doing a better job, but did not really establish a solid budget. We ended up in 2007 with a truck payment, little money going into IRA's and no emergency fund.

Then I heard of a possible recession. The last one(as small as it was)was enough to rock my boat. This time I quit my golf membership, cable, setup a strict budget, started working more hours and got serious.

First thing we paid off the truck, built an 3 months emergency fund and got used to living on one paycheck while saving the other. Today, we have more than 6 months EF, we have a car fund, a building fund, maxout roths and are sticking to our plan. I no longer have bleeding ulsers or worry about possible emergencies.

Don't be afraid to do the extreme to get where you want to go. Aside from ourselves everything else is just stuff. I would not have a single boat sitting around when I have no EF. If I could not quickly get out of debt, I would sell my house. Good luck.

[cschin4]

1. He needs to get a full time job. If self employment isn't really bringing in the bacon, no bennies, then it isn't working. He should get a full time job and work his other business on the side.
2. You should get a full time job. That would solve your money issues.

Next, look at how you really want to live. Do you really want to live on and care for 11 acres as you begin moving into the next decades? Are you into farming and gardening? If so, you could sell and find a smaller, more easy to maintain property and you dont' need a lot of room for a garden for 2 people. And, you would have more time to spend working your job which actually brings you in money and less time maintaining and fixing at home. And, keep at boats if you enjoy them as they are probably fun and entertaining.

[rigz]

Steve maybe it is term, I have a hard time remembering. We pay $48. a month for 30 years, then we will receive our money back.

sorry i dont mean to hijack your thread, but can someone explain to me why a life insurance company would just give your money back after 30 years? im not saying i dont believe you, i really just dont understand.

[disneysteve]

Steve maybe it is term, I have a hard time remembering. We pay $48. a month for 30 years, then we will receive our money back.

That sounds like return of premium term, also a rip off, though not nearly as much so as whole life.

[1NerveWonder]

Go online today and get quotes for 20-year level premium term insurance for you and your husband. Most likely, you will pay the same amount for 10 times as much coverage. Whole life is a huge rip off. Get the term policy and as soon as you do (but not before), cancel the whole life policy.

Steve maybe it is term, I have a hard time remembering. We pay $48. a month for 30 years, then we will receive our money back.

[disneysteve]

Whole life Ins: $48.00

Go online today and get quotes for 20-year level premium term insurance for you and your husband. Most likely, you will pay the same amount for 10 times as much coverage. Whole life is a huge rip off. Get the term policy and as soon as you do (but not before), cancel the whole life policy.

[1NerveWonder]

I suggest it is time to get started saving.

A good place to begin is assessing where you are now. Do you have a written budget? Do you know where all of your money is going? Start with that. Then look at places you can cut, so that you have money to divert to savings/investments.

As to whether or not you should sell your home, that is a lifestyle choice which you and your husband will have to make together.

You have 11.5 acres. What can you do with that to bring in income? Can you plant Christmas trees? Board horses? Grow a crop to sell? Store rvs?

If you and dh decide to stay where you are, look at how you can generate some additional income, which could all go towards your savings/investments.

I would love to be able to farm, but our 11.5 is hillside acreage, mostly wooded. I have 2 raised garden beds I plant to do some home canning. And I'm scared of horses LOL.

[1NerveWonder]

Why not? Why do you have no savings? Where has your money all been going up until now? We'd really need the answer to those questions in order to give worthwhile advice.

I'd suggest listing your income and expenses and let us take a look so we can make suggestions as to where to cut back to free up money for savings.

Our home and DH business. Our only debt is our mortgage. Pay-off is $85,000